Ashley pays off further £45m of debt, Mort says club could well have folded

[OzzieMandias]

This is a move probably more sensible than magnanimous. I don't know how it would otherwise work for him in tax terms, but if he's got the cash lying around, he might as well shift it to SJH Holdings from wherever else it was, and thus both avoid paying the interest on the debt and giving the club a better shot at developing from the income it generates year by year.

[Dokko]

So does this mean for the 1st time NUFC will benefit from 52k worth of tickets?

 

I'm assuming the stadium expansion debt has been wiped.

[EthiGeordie]

I wonder how FFS and his borad thought to finance the new re development of the Stadium? with all this debts?

[EthiGeordie]

  lol funny one

I wonder how FFS and his borad thought to finance the new re development of the Stadium? with all this debts?

 

I imagine Freddy did this a lot.

 

http://farm1.static.flickr.com/120/287369893_e34f6c649d.jpg

[Guest MagicNumber9]

You just gotta love Mr Ashley

[merlin]

will that affect our transfer kitty next season then, because thats a lot of money

 

ashley has intigued me so far as to how he sees newcastle- does he see us as a hobby-type thing to spend money on, (wearing the newcastle shirt and actually celebrating when we score) which isn't neccessarily a bad thing or are we a money-making business which becomes a bigger aset the more successful we are?

 

 

 

 

He MUST have a long-term design for the club - you do not pay off those chunks of cash unless you want the business to survive and prosper.

He will have slashed the Interest burden on the club by millions each season, so the odds are that there WILL be quite a decent transfer kitty as well, but there is no doubt that the pathetic signings which have occurred under Shepherd are a thing of the past - Ashley will demand VALUE FOR MONEY, not bling merchants, and although he won't be frightened  to give Sam big money, he will want the real deal for it.

 

Up to now, we seem to be getting that in the main - most transfers have been excellent value and I expect that to continue, although it will be a long road to get us where we want to be ; I expect it to be 3 years before we even LOOK like challenging for the PL.

 

Nevertheless, the club is in a healthier financial position now that for many, many years.

[merlin]

In certain circumstances, for tax reasons, it actually pays to have a fair amount of debt.

 

It NEVER pays to have large amounts of debt - ask all those with big Mortgages now that Interest rates are rising ; you can use other more useful choices to reduce Tax...

[Slugsy]

In certain circumstances, for tax reasons, it actually pays to have a fair amount of debt.

 

It NEVER pays to have large amounts of debt - ask all those with big Mortgages now that Interest rates are rising ; you can use other more useful choices to reduce Tax...

 

In a company there are many circumstances where it is far more efficient all round to fund the business through debt rather than equity.  If the cashflow is there then it is far cheaper to fund it through debt.  If the cashflow isn't there then that is another matter.

 

I could regurgitate theory on returns and risk but in real life how the hell do you think a private equity model works?

[jimmymag]

The silence on this topic from NE5 and HTL is deafening.

[macbeth]

The silence on this topic from NE5 and HTL is deafening.

 

presumably Shepherd isn't paying them any longer

[Guest elbee909]

The silence on this topic from NE5 and HTL is deafening.

 

presumably Shepherd isn't paying them any longer

 

That's _our_ money, not Shepherd's

[OzzieMandias]

The silence on this topic from NE5 and HTL is deafening.

 

Thank heaven for small mercies, eh?

[Baggio]

NE5 is band tbh.

[Guest elbee909]

NE5 is band tbh.

 

On tour?

[Baggio]

im on my phone and busy fwiwtbh.

[OzzieMandias]

NE5 is band tbh.

 

Almost worth starting a thread to imagine what songs he'd play.

[S.S.R.]

I'm fully behind Ashley, and applaud his efforts, but they're hardly going to say they got a bargain and will rake it in, are they?

 

Better to claim the club was on its knees and look like Knights in shining armour.

 

For a financially f***** up club, it's funny how many interested parties there were/are.

 

He could sell it tomorrow and make a profit.

[macbeth]

I'm fully behind Ashley, and applaud his efforts, but they're hardly going to say they got a bargain and will rake it in, are they?

 

Better to claim the club was on its knees and look like Knights in shining armour.

 

For a financially f***** up club, it's funny how many interested parties there were/are.

 

He could sell it tomorrow and make a profit.

 

The HAlls had been looking to sell since 2004 and couldn't find a buyer, what do you feel has changed since May ?

[S.S.R.]

I'm fully behind Ashley, and applaud his efforts, but they're hardly going to say they got a bargain and will rake it in, are they?

 

Better to claim the club was on its knees and look like Knights in shining armour.

 

For a financially f***** up club, it's funny how many interested parties there were/are.

 

He could sell it tomorrow and make a profit.

 

The HAlls had been looking to sell since 2004 and couldn't find a buyer, what do you feel has changed since May ?

 

Holding out for the right amount? It's not like they could put it in the autotrader.

[ChezGiven]

Lots of people wanted it, SSR is spot on, the problem was you cant just walk in and offer money, there were certain incumbents who didnt want to sell.

 

The way Ashley steamed in and fucked Shepherd over (as is the way in all business) was completely in keeping with how he operates.

 

The PR plan they had in place has been the most impressive of the whole episode and good on them for that.

[macbeth]

I think lots of people said they were interested, anyone who had a serious look at the books, or had made the offer Ashley had would have got it easily. A business losing close to £1.m a month on top of huge debts has no bargaining position. It also has littl ein the way of attractions either.

 

Ashley, thankfully, doesn't have a money issue, and can take a very long approach. Even people who are only seriously rich,as opposed to obscenely rich couldn't have taken on our debts and liekly on-going losses.

[Mick]

Everything the club does seems to be done in a very professional manner, how long has it been since we could say that? 

[ChezGiven]

I think lots of people said they were interested, anyone who had a serious look at the books, or had made the offer Ashley had would have got it easily. A business losing close to £1.m a month on top of huge debts has no bargaining position. It also has littl ein the way of attractions either.

 

Ashley, thankfully, doesn't have a money issue, and can take a very long approach. Even people who are only seriously rich,as opposed to obscenely rich couldn't have taken on our debts and liekly on-going losses.

 

Rubbish. He is a businessman. Any further description or analysis is redundant. The second sentence of this post contains all the information you need.

 

If people can take billions out of a failing northern rock by simple short selling, dont you think there are plenty of people out there capable of making money out of the club? How did the west ham finances look? The Man city finances, how were they? What about those Villa finances? Did they look like the investment of the century? I could go on....

 

 

[Guest Toony™®]

Considering he has wiped out £75m of the debt...the debt must be in single figures if not wiped according to some newspapers which placed it at £75m...

 

 

 

[quayside]

I would advise some caution here. It is not at all certain that he has wiped out the debt. I said in an earlier post if he has put the money in as share capital then he has indeed wiped the debt. But it is also quite possible that he has just replaced the debt by becoming the lender himself so the debt would not be wiped.

 

Abramovich has lent Chelsea about £400 million interest free and he is shown in their accounts as a lender. The only reason Chelsea is not hugely insolvent is because Abramovich has given guarantees that he won't call it in - and in any case calling it in would be an extremely stupid thing to do when you own the club! But if he decided to sell he will want that money back from the new owner.